Shariah committee to okay Islamic products

dubai — The UAE Central Bank has established a Shariah committee which will issue fatwas (religious edicts) and also regulate products, services and activities of the financial institutions to ensure that they meet Shariah standards.

The committee will also introduce and approve new and existing Shariah standards and uniformed documents related to best practices for global Islamic financial services, the central bank said in a statement on Wednesday.

The first meeting of Higher Shariah Authority was held at the central bank’s headquarters on Wednesday. Governor Central Bank of the UAE Mubarak Rashed Al Mansoori, chairman of the committee Sheikh Dr Ahmad bin Abdulaziz Al Hadad and board members Dr Jasim Ali Al Shamsi, Dr Issam Muhammad Ishaq, Dr Oznan Hasan, and Dr Usaid Muhammad Adeeb Al Kilani attended the inaugural meeting.

In addition, the authority will also liasion with other institutions around the world to develop Shariah products and conduct research for the growth of the industry.

The formulation of the committee will ensure uniformity of the products in line with the Shariah standards across the Islamic finance industry in the UAE.

The move will also help reduce costs, which will benefit consumers and strengthen regulatory and supervisory control over the industry. Last, but not least, the committee will also provide a group of highly specialised experts in Shariah compliance. Analysts believe that a higher authority under the central bank issuing fatwas and approving all Shariah products will give more confidence to consumes to use Shariah products.

— waheedabbas@khaleejtimes.com